Top 10 Real Estate Trends for 2013

Could 2013 be the next turnaround year for the Orange County housing market? Forecasters say yes. Assuming the recession or global uncertainty don't upend the economy, home sales and prices will go up, sales will be brisk, and inventories and interest rates will stay relatively low, economists and real estate industry experts say. TEXT BY JEFF COLLINS, ORANGE COUNTY REGISTER

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Could 2013 be the new 1997?

After six years of lackluster sales and falling prices, 1997 was the year that launched a tripling of Orange County home prices within a decade. Will 2013 – coming after a seven-year housingdownturn -- be the next turnaround year?

Forecasters say yes.

Assuming the recurring specters of recession or global uncertainty don't upend the economy, home sales and prices likely will go up, economists and real estate industry experts say. Demand will take off. Inventories and interest rates will stay relatively low. Homebuilders will be the busiest they've been in six years.

"It's going to be a very good year," said former National Association of Realtors President Dick Gaylord, a Long Beach broker. "(Interest) rates are going to remain low. Consumer confidence is picking up, and prices are picking up. That's a winning combination."

Here are 10 trends to expect for 2013:

1. Prices will rise

Prices finally bottomed, and even climbed in 2012. They'll go up even more in 2013, forecasters say.

Economists at California State University, Fullerton, say prices will rise from 5 percent to 7 percent next year.

Steve Thomas of ReportsOnHousing.com was more optimistic, predicting that prices will increase 10 percent next year.

Economists at Chapman University and the online site Zillow.com put next year's appreciation in the 5.8 percent to 6.8 percent range.

2. Sales will rise

Home sales were up nearly 17 percent in 2012 – the biggest percentage gain in 14 years. Industry observers say sales will climb even higher in 2013, buoyed by low interest rates and rising consumer confidence.

Thomas, of ReportsOnHousing.com, predicted O.C. home sales will grow 10 percent in the year ahead. That would boost sales to nearly 37,700 houses, condos and townhomes in 2013, more than any year since 2006.

Several industry observers predicted that more young people will move out of their parents' homes, triggering increased demand. So will rising prices.

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Could 2013 be the next turnaround year for the Orange County housing market? Forecasters say yes. Assuming the recession or global uncertainty don't upend the economy, home sales and prices will go up, sales will be brisk, and inventories and interest rates will stay relatively low, economists and real estate industry experts say. TEXT BY JEFF COLLINS, ORANGE COUNTY REGISTER
Both home sales and prices are expected to increase in 2013. Forecasters predicted a 5 percent to 10 percent increase in the median home price next year. Steve Thomas of ReportsOnHousing.com forecast that home sales would increase 10 percent more as well. GRAPHIC BY BRIAN MOORE, ORANGE COUNTY REGISTER, TEXT AND GRAPHIC REPORTING BY JEFF COLLINS, ORANGE COUNTY REGISTER
Homebuilders will be the busiest they've been in six years. Both Chapman University and CSUF predicted that builders would pull construction permits for more than 6,200 homes next year, compared to 5,200 to 5,400 permits expected this year. That would push 2013 homebuilding to the highest level since 2007. REGISTER FILE PHOTO, TEXT BY JEFF COLLINS, THE REGISTER
Some developers complained they couldn't build houses fast enough to meet all the demand in 2012, said Chris Porter, a manager for John Burns Real Estate Consulting. REGISTER FILE PHOTO, TEXT BY JEFF COLLINS, REGISTER

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